Customer

Relationship
Management (CRM)
 What is CRM ?
Layman Definition of CRM

The process includes collecting customer data, analyzing this

data to make decisions which helps to make new
customers and satisfy the existing ones.

A Customer-centric business strategy which

• Focuses on Managing and optimizing entire customer life

cycle.

• Demand re-engineering of work processes with customer

in focus.
 .

• It consists of 3 phases
• Planning Phase
• Assessment Phase
• Execution Phase
 Planning Phase
• Plan to approach the customers
• Plan for making new campaigns
• This phase includes
Marketing tools


 Various Softwares

• Marketing & Sales personnel are involved in this

phase
 Assessment Phase
• Select customer base for analysis
• Analyze customer requirements
• This phase includes technologies like
 Data warehousing

 Data Mining

 Online analytical processing (OLAP)

• A certified personnel sets up the CRM package while a

business analyst analyzes the data
Execution Phase
• Customer interaction
• Executes campaigns
• Track customer feedback
• This phase uses
 Internet
 Call centers
 Direct mails etc.
 Technology behind Assessment Phase

Integrates with Data Warehouse

Data & OLAP to implement intelligent
Mining algorithms to discover patterns.

Data
Warehouse

Warehouse
containing
Customer data. OLAP
Server
User analyzes these
patterns to take decisions
Multidimensional Structures
suitable for his business.
to facilitate better and fast
analysis of data.
 With CRM, a business
can …(Benefits)
• Provide better customer service
• Make call centers more efficient
• Increase customer revenues
• Help sales staff close deals faster
• Simplify marketing and sales
• processes Discover new customers
• Facilitates optimized marketing
 Advantages
• It helps manage all of your customer data in one place and allows workers to be
more productive and efficient by tracking customers history and adding reminders
for the sales calls and meetings.

• It helps to manage your growing database and speeds up the growth process.

• It helps centralize data.

– The process becomes automated such as sending auto emails and SMS to customers.

• It builds long-lasting relationships with customers, through small but meaningful

functions.
– such as sending them birthday wishes.

• Determine how and where to make improvements in your business. For example,
you can evaluate your business strategy integration with other CRM services and
third-party apps.
Limits

• Expensive
• Hard to implement
• Time consuming
• It requires a lot of management
and money
 Disadvantages
• The transition from manual to automatic processes is
always one of the major obstacles which you could face
while implementing CRM.

• The psychology of being tracked; with the

implementation of CRM software even the team will
have concerns about the possibility of being hacked.
– However, with the right training and guidance, it can be
rectified.

• A slowdown in processes.
 Trends
• The advent of social media and the proliferation of mobile
devices has caused CRM providers to upgrade their offerings
to include new features that cater to customers who use these
technologies.

• Social CRM: refers to businesses engaging customers directly

through social media platforms such as Facebook, Twitter and
LinkedIn.

– Social media presents an open forum for customers to share

experiences with a brand, whether they’re airing
grievances or promoting products.
 .
• businesses use various tools
– that monitor social conversations, from specific mentions
of a brand to the frequency of keywords used, to
determine their target audience and which platforms they
use.

• Other tools are designed to analyze social media

feedback and address customer queries and issues.

• Companies are interested in capturing sentiments

such as a customer’s likelihood of recommending
their products and the customer’s overall satisfaction
in order to develop marketing and service strategies.
 .
• Mobile CRM – or the CRM applications built
for smartphones and tablets

– is becoming a must-have for sales representatives

and marketing professionals who want to access
customer information and perform tasks when they
are not physically in their offices.

• Mobile CRM apps take advantage of features

that are unique to mobile devices, such as GPS
and voice-recognition capabilities
 CRM challenges
• For all of the advancements in CRM
technology

– without the proper management a CRM system

can become little more than a glorified database
where customer information is stored.

• Data sets need to be connected, distributed

and organized so that users can easily access
the information they need.
 .
• Companies also struggle to achieve a “single view of the
customer,” where many different data sets can be
seamlessly accessed and organized in a single dashboard
or interface to create one view of a customer’s account and
relevant information.

• Challenges arise when customer data is stored in several

separate systems or when data is complicated by
duplicate or outdated information that slows down and
hampers the business process.

• These problems can lead to a decline in customer

experience
– due to long wait times during phone calls, improper handling
of technical support cases and other issues.
 .
• The main challenge of a CRM system is:
– delivering a cross-channel customer experience
that is consistent and reliable.

• Social media:
– for example, has been touted as a more efficient
channel by which customers can reach companies
and get problems resolved or queries answered,
rather than enduring the traditional method of
waiting in a phone queue or awaiting an email
response
 Conclusion

• CRM is a concept, implemented with the support of

various technologies.

• Supporting technologies include Data warehousing,

Data Mining, OLAP etc.

• A proper Data warehouse should be in place for any CRM

initiative.

• Customer needs should be in focus while implementing

CRM.
 CRM Basics
• CRM is the use of database software to collect,
analyze and interpret customer data.

• The goal is to have more targeted marketing,

sales and service activities to enhance loyal
relationships with core customers and to drive
more revenue and profit in the long run.

• While many employees might participate in a

CRM system, it is overseen by the marketing
department.
 SCM Basics
• SCM is the use of software to manage
automated transportation and logistics with
suppliers or buyers.

• A business that uses SCM syncs its inventory

software programs to suppliers to allow for rapid
replenishment of inventory when goods get low.

• The goal is to have more trusting, efficient

supply chain relationships to minimize
distribution costs and optimize revenue.
 .
• Customer relationship management, or CRM, and
supply chain management, or SCM, are both
software-driven business systems

• The primary distinction is that CRM is a

marketing process, whereas SCM is a
distribution process

• With both systems, companies rely on software

to facilitate more effective and efficient
business activities and gather information to
make forecasts
Role of supply chain management software
• Supply chain planning software for activities such as
demand management.

• Supply chain execution software for activities such as day-

to-day manufacturing operations.

• Supply chain visibility software for tasks such as spotting

and anticipating risks and proactively managing them.

• Inventory management software for tasks such as

tracking and optimizing inventory levels.
 Supply Chain Responsibilities

• Increase Customer Service

• Reduce Production Cost
• Improve Quality of Products
• Improve Financial Position
• Development of Best Marketing Strategies
 System Design
• consists of three components. They are system portal,
Object Repository, and database

• SCM System Portal: This interface between supply

chain management system and environment.

• It has two main functions.

– First, the function receiving and retrieving external data
sources, and making system to process and deal with the
data in right way.

– Second, providing data or information for other system or

system users.
• SCM Object Repository: This is the primary part
of the SCM system. All processes are stored in
this repository, and logically designed in object-
oriented architecture.

• Database: This component provides the

functionality of storage of various data format.
Including the supply chain network member data,
product, and production information, etc.
 Firm B Firm C
Firm
Firm A D

SCM System Portal

Extranet Extranet

SCM Object Repository

Database
 Alternative System-Building
Approaches

• Systems lifecycle
• Prototyping
• Application software packages
• End-user development
• Outsourcing
 Continue..
• Systems lifecycle is a traditional methodology that uses a
phased approach to building a system, dividing systems
development into formal stages, roughly corresponding to the
stages of systems development.

• Each stage consists of basic activities that must be

performed before the next stage can begin.

• Technical specialists are responsible for much of the

systems analysis, design, and implementation work.

• end users are limited to providing information requirements

and reviewing the work of the technical staff.
 Prototyping
• It is the process of building an experimental
system quickly and inexpensively for
demonstration and evaluation so that end
users can better define information
requirements.

• The prototype is a preliminary model that is

refined until it meets end-user requirements.
 Prototyping Process
• The four-step model of the prototyping process
consists of the following:-

1. Identify the user's basic requirements

2. Develop a working prototype
3. Use the prototype
4. Revise and enhance the prototype
 Application software package
• An application software package, another strategy
in developing an information system

• It is a set of prewritten, precoded application

software programs that are commercially available for
sale or lease.

Features of Application Software Packages are:-

1. Customization
2. Request for Proposal
Features Of application Software Packages

• Customization is allows package to be modified

to meet unique requirement without destroying
the integrity of the package software

• RFP is a detailed list of questions submitted to

vendors of packaged software.

• Design activities focus on matching requirement

to package features.
 End Users Development
• It enable end users to create Reports or develop software
applications with no technical assistance.

• In end-user development, software tools are called fourth-

generation languages.

1. Application Generators
2. PC software Tools
3. Application Software Packages
4. Query Language
5. High Programming Languages
6. Graphics Language
• Strengths
– Improve requirement determination as user specify
their own business need.
– Increase user involvement and satisfaction

• Weakness
– May carry high cost
– Updating requirement
 Outsourcing
• Using an external vendor to build or operate a firm’s
information systems is known as outsourcing

• The system may be custom built or may use a software

package.

• Firms outsourcing because their internal information

system staff cannot keep pace with technological change.

• The provider of outsourcing services benefits from

economics of scale.
 .

.
 Benefits of SCM

• Higher Efficiency Rate

• Reduce Cost Effects
• Raise Output
• Raised Your Business Profit
Level
• Boost Cooperation
• Lowers Delay in Processes
• Enhanced Supply Chain
Network
 .
• It gives smoothed execution to all tasks in order to achieve
long-term profitability in a solid way.

• Most of the time supply chain management flow is divided

into 3 basic flows that are:

• The Product Flow

• The Information Flow
• The Finances Flow

• Therefore most of the organizations are switching to adopting

such new innovations as per marketing trends.
 .
• Reduce Cost Effects: There are numbers of ways according to
which, supply chain management software can lower down the
current overhead expenses of your organization.

• For example:

– Improves inventory management system

– Make your system more responsive, you can easily achieve

your goals by examining customer’s requirements.

– Stronger your relationship with vendors & distributors.

 .
• Raise Output

• SCM software is designed in a way to improve

communication, collaboration and coordination with vendors,
transportation and shipping companies, Suppliers and raise bi-
directional information flow.

• The streamline & centralized distribution strategy of supply

chain management software make it more reliable for end
users and give more accurate output results.
 .
• Boost Cooperation Level
• Supply chain management software gives you access to track what
your supplier and distributors are doing all the times and vice
versa.

• Supply chain management linked up all the business software

systems at a remote location that automatically improved
collaboration in all partners.

• SCM software gives the opportunity to share information. Share

information platform keeps stakeholders informed, so the whole
process of SCM runs smoothly.

• These collaborations accelerate other tasks like reporting, forecasts,

order statuses, quotation and other transportations plans in real
time.
 Trends in Supply Chain Management
(SCM) Software

• As modern Supply Chain Management (SCM) becomes

strategic, adaptive and demand driven, software vendors are
developing systems to support the new SCM paradigm.

• The new supply chain systems will go beyond operating

efficiencies to a totally integrated system that improves
management, planning and execution at all levels, giving the
organization key competitive advantages.
 Trends
• Demand Driven Supply Chains
• Dynamically Synchronized Supply
Chains
• Globalization
• Risk Management
• Collaborative Relationships
 Demand Driven Supply Chains
• Based on well defined value propositions for each
customer segment, planners can set forecasting
and fulfillment strategies by product grouping.

• Planners can now forecast demand, simulate

buying patterns and perform "What If" Analysis
to align the supply chain with timely market
conditions and the organization's goals.
 Dynamically Synchronized Supply
Chains
• Software simulation, analysis and planning supports the
selection of supply chain strategies most appropriate for the
different products or product groupings.

• Responsive Supply Chain Strategy is used for Unplanned

Random Demand which requires postponement strategies and
operational decisions based on fluid changes in demand.

• For example, manufacturers place greater emphasis on

flexibility than efficiency so that they can quickly respond to
changes in demand; while retailers maintain smaller display
quantities and narrow the category assortments.
 .
• Agile Supply Chain Strategy is used for Unexpected
Variations in Demand and is based on flexibility in decision
making.

• One of the challenges is maintaining the right balance between

safety stock and service levels.

• Lean Supply Chain Strategy is used for Predictable Demand

and is best served with automated decision making based on
forecasts, fulfillment priorities and operational parameters.
• Lean supply chain strategies maintain short lead times, low
ordering cost, low inventory levels and higher service levels.
 .

• Replenishment Supply Chain Strategy is used

for Known Demand whereby replenishment
orders are automatically triggered when
inventory levels fall below thresholds or re-
order points.
concept and philosophy of decision support system

• Decision support systems are an application of Herbert

Simon model .

• The model has three phases, which are, intelligence, design

and choice .

• The DSS basically helps the information system in the

intelligence phase where the objective is to identify the
problem and then go to the design phase for solution.

• The choice of selection criterion varies from problem to

problem.
 Cont...
• It is, therefore, required to go through three
phases again and again till a satisfactory
solution is found.

• In the use of three phase cycle, we may use

inquiry, analysis and models or accounting
systems to come to a rational solution.
 .
• In decision making, we know that there are two types of
decisions- programmable and non-programmable.

• The programmable decision, because of its rule base

structure, can be computerized, as inputs, processing
methodology; analysis and choice of decision making
are predetermined.

• DSS can be built around the rule in case of

programmable decision solution, while in non-
programmable decisions, the rules are not fixed or
predetermined, and requires every time the decision-
making cycle
.
 BENEFITS OF DSS
• Ability to view data/information in different dimensions and
sensing the problem, trend, pattern through different views

• Ability to understand and assess business performance and

various results in terms of cause and effect, and enabling to
define the problem

• Ability to understand the problem and its results, and ability

to judge the impact on business

• Ability to assess the impact of any change in the business

performance and enabling to focus on the areas where the
impact is negative
 Cont..
• Ability to view a complex situation or problem and to
design a model to analyze the problem, develop
alternatives to solve the problem

• test the solution and to conduct sensitivity analysis

• Ability to make better decisions due to quick analysis,

modeling, developing alternatives and testing for
selection

• Ability to control the risk exposure in decisions

 .
• In the case of DSS, models distinguish it from MIS
(Management Information Systems).

• The models come from an iterative process which builds upon

itself through the interaction with end users.

• The decision makers can manipulate the models to conduct

experiments and analyses.

• Two such ways to manipulate models include what-if analysis,

sensitivity analysis, goal-seeking analysis, optimization
analysis.
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